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TSX.V: CUM
VANCOUVER, Feb. 26 /CNW/ - Copper Mountain Mining Corporation ("CMMC" or
"Copper Mountain" or the "Company) would like to announce its key achievements
of the Company's first full year of activities with its financial statements
for the year ended December 31, 2007. Copper Mountain was founded in 2006 with
the vision of building a mid-tier copper producer within 4 years.
HIGHLIGHTS OF 2007:
- On December 22, 2006 the Company acquired all of the issued and
outstanding common shares of Similco Mines Ltd., a former producer of
just under 2 Billion pounds of Copper.
- Copper Mountain was successful in retrieving over 400,000 meters of
historical drilling, and converted this into a digital geological
database.
- A diamond drill program was immediately initiated in January 2007 and
with successful results was expanded to 44,000 meters - one of the
largest exploration drill programs in British Columbia.
- Drilling confirmed continuity of mineralization between existing pits
and an interim independent NI43-101 compliant resource estimate was
completed in September, 2007, based on drilling up to July 20th (see
news release Sept 6, 2007).
- A Summary of this interim resource is:
- Measured and Indicated resources, based on a 0.25% Cu cut-off
grade, are 163 million tons grading 0.43% Cu containing
1.4 billion pounds of copper.(*)
- Inferred resources at 0.25% Cu cut-off grade are 113 million tons
grading 0.37% Cu containing 0.8 billion pounds of copper.(*)
- Gold and silver grades were not reported on, however, historical
production records indicate that approximately 12% of the
concentrate value was from silver and gold credits and data from
the current exploration program suggests that future production
will have similar credits.
- A Preliminary Assessment Report ("PA Report") completed by Merit
Consultants International Inc confirmed the Super-Pit concept and
contained production parameters, operating costs, capital costs and
financial projections.
- The PA Report has attractive economics with anticipated production of
more than 100 million lbs Cu per year with production beginning in
late 2010
- The PA Report base case pretax net present value (NPV) with a capital
cost of $366 million, a long term copper price of US$1.80/lb, and a
5% discount rate over the 15 year mine life is Cdn$406 million. The
pre tax internal rate of return (IRR) is 25.56% for the project with
a capital payback of 2.69 years and the project exceeded the
Company's investment hurdle rate.
- In November Hatch Engineering was contracted to complete a detailed
Feasibility Study as recommended by the PA Report which is expected
to be completed in early 2008.
- A deep penetration geophysical survey completed near year end
identified several large chargeability anomalies, both near surface
and at depth. These anomalies provide large "Blue Sky" targets which
will be drill tested starting in early 2008.
Financial Results
All of the expenditures relating to the acquisition and exploration of
the Copper Mountain Project have been deferred during the year. A total of
$7,244,592 in exploration expenditures on the property were incurred during
the year ended, December 31, 2007, as compared to $1,224,361 in acquisition
and exploration expenditures for the prior period. The Company now has total
assets of $18.9 million at year end December 31, 2007 as compared to
$7 million for the comparative period. The Company recorded a loss of $837,560
or $0.05 per share for the period ended December 31, 2007 as compared to a
loss of $236,593 for the comparative period last year. The increase in loss is
attributable to the increased activity at head office that has lead to the
significant advancement of the Copper Mountain Project during 2007. At year
end the Company had a working capital of $5.4 million as compared to
$3.3 million for the comparative period. The Company's financial statements
are now posted on Sedar and the Company's web page for further viewing.
About Copper Mountain Mining Corp.:
CMMC is a new public BC resource company. The Company owns 100% of the
Copper Mountain Project located 15 km south of the town of Princeton in
southern British Columbia. The developed infrastructure, substantial resource,
and extensive historical data base provides an exceptional project. Copper
Mountain Mining Corporation's shares trade on the TSX Venture Exchange under
the symbol CUM. Additional information is available on the Company's web page
at www.CuMtn.com.
On behalf of the Board of
COPPER MOUNTAIN MINING CORPORATION
"Rod Shier"
Rodney A. Shier
Chief Financial Officer
(*) Regulatory Requirements
"The resource estimated was prepared by Giroux Consultants Ltd. of
Vancouver British Columbia, an independent qualified person as defined by
Canada's National Instrument 43-101. Methods used in determining and
reporting the resources are consistent with CIM Best Practices Guidelines
for the estimation of mineral resources and mineral reserves".
Note: This release contains forward-looking statements that involve risks
and uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to the documents, filed by the Company
on SEDAR at www.sedar.com, specifically the most recent reports which identify
important risk factors that could cause actual results to differ from those
contained in the forward-looking statements. The Company undertakes no
obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements.
%SEDAR: 00025279E